Powerband Global has received $676,000 from the federal government to develop software aimed at making buying, selling and servicing vehicles easier.
The investment, announced earlier this week, comes via the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).
PowerBand Global's mandate is to modernize and simplify the management of transactions, making them more efficient and competitive in today's digitized market.
For its efforts, the Burlington, Ontario-based company is being gifted up to $676,000 through FedDev Ontario's Investing in Business Innovation initiative, which will be used to develop the Dynamic Dealer Exchange (DDX) system.
DDX is a described as a hub enabling dealers to sell and finance vehicles, manage inventory and maximize after-sales service revenue on one platform. The company says it's an “appealing solution for dealerships that currently have to patch together several different applications to handle workflow.”
The investment will also fund the development of a portal to connect businesses directly to their financial lending partners. Powerband Global says its portal has completed successful trials in southern Ontario and is currently being used by several retailers to help arrange consumer financing.
In addition to significant contributions from investment partners Kelly Jennings and Leggat Auto Group, PowerBand Global has secured a $2 million investment from Covington Capital Corporation.
“The PowerBand Global model brings together the money and expertise of registered venture capitalists, our initial individual investors and now the federal government,” said PowerBand Global CEO Rob Orr. “We feel this contribution will be imperative to our technology development and boost our competitiveness in Canadian markets and on the international stage.”
The Investing in Business Innovation initiative is designed to boost private sector investment in start-up businesses to accelerate the development of new products, processes and practices and help bring them to market. Funding under the initiative is also available for angel investor networks and their associations to attract new investment and support the growth of angel investment funds.